One 97 Communications shares gained 2.19% on Monday after reporting a turnaround from losses to a ₹554 crore annual profit for fiscal 2026. Investors are tracking this shift in profitability and steady revenue growth alongside improved cash flow. The company also recently introduced a new 'Split Bills' feature as it focuses on expanding its digital services.
Shares of One 97 Communications, the parent company of Paytm, rose 2.19% to trade at ₹1,372.40 on Monday morning. This market movement follows the company's latest annual financial report, which shows a major shift in its business performance as it moved from a loss of ₹665.70 crore in 2025 to a net profit of ₹554 crore in 2026.
Transition to Profitability
The company’s financials indicate a consistent upward trend in revenue over the last few years. Consolidated revenue climbed from ₹4,974.20 crore in 2022 to ₹8,437 crore by the end of 2026. On a standalone basis, the company also reported a recovery, moving to a net profit of ₹67 crore for the year ending March 2026, compared to a loss of ₹789 crore the previous year. Quarterly standalone results for June 2026 further highlight this momentum, with the company posting a net profit of ₹185 crore, rebounding from a loss of ₹264 crore in September 2025.
Balance Sheet and Cash Position
A critical factor for investors is the change in the company's cash position. The balance sheet as of March 2026 reflects a positive net cash flow of ₹853 crore, a significant improvement from the negative cash flow of ₹1,914 crore recorded in March 2025. With reserves and surplus reaching ₹13,049 crore by March 2026, the company appears to have more financial flexibility compared to its previous periods of high cash burn.
Operational Focus and Future Monitorables
Beyond financial results, the company continues to introduce new features such as 'Split Bills' to drive user engagement. While the recent numbers show a clear improvement, the company operates in a highly competitive digital payments and financial services sector in India. Future growth and the ability to maintain these profit margins will depend on the company's success in balancing its expansion plans with operational efficiency. Investors will likely monitor upcoming quarterly results to see if this trend of positive net profit is sustainable and how the company manages its ongoing investments in technology and customer acquisition. Market participants will also look for management commentary on the long-term strategy for scaling its core payment business while managing competitive pressures from other UPI-based platforms.